Snapchat announced the launch of Snapchat Partners today, an advertising API (application programming interface) that is partnering with more than 20 tech companies. The new program was launched to increase advertising on the platform. Snapchat says that the API will make it easier for marketers to buy ads on the platform.
According to a study from L2, which examined hundreds of marketers across sectors, brands average 26 posts per week on Snapchat. However, nearly one-third of brands with a Snapchat account don’t even post once a month on the mobile app. The company is hopeful that the new initiative will increase brand engagement on the platform.
The partners on the new API are divided into two categories: Ads Partners and Creative Partners. Ads Partners will work on advertising campaigns for marketers developing software, analyzing results, and enabling purchases. The Ads Partners announced so far include 4C, Amobee, Adaptly, Brand Networks, SocialCode, TubeMogul, VaynerMedia and Unified.
Creative Partners will focus on social content for the platform. Recently announced Creative Partners include Alldayeveryday, Big Spaceship, BrandLab, Contented, Matte Finish, MediaMonks, Moment Studio, Stun Creative, The 88, The Mill, Refinery29, Studio Number One, Truffle Pig, Unit9, VaynerMedia, and Virtue. Financial details about the relationships on the API were not disclosed.
Snapchat has rapidly built its ad business since last year. Snapchat’s premium video ad inventory has been priced on a cost-per-thousand-impression rate in the $40-60 range, according to sources in the industry. The currently belief is that both API videos and Snap Ads Between Stories will be less expensive. However, prices may increase for special events like July 4th or Black Friday due to supply and demand.
The company says that the API inventory will be sold via an automated, auction-based system. This will be the first time that Snapchat ads will be sold by third parties. The ads won’t be appearing on the site for a few weeks yet. Snapchat says that the quality of the ads will be a priority and claims that each one will be inspected by company representatives. Snapchat Partners recently received clearance to coordinate with brand marketers.
Snapchat is hoping that the wider availability of its video ads will be popular with marketers. The company claims that the new initiative will increase consumer engagement five times over the clickthrough rates on most mobile ads. On any given day, Snapchat reaches 41 percent of consumers 18-34 in the U.S., a coveted demographic for advertisers. Snapchat currently has about 150 million daily users.